High insurance costs in food industry must be tackled, says ICOS
In a pre-budget submission, it urged the Government to introduce measures that will encourage growth in the food industry and not hinder it.
Dessie Boylan, president, said a number of co-ops affiliated to ICOS have experienced insurance increases of 125% for cost of insurance for 2002. It has become one of the largest items in the expense accounts for the year.
“The cost of insurance in other EU countries bears no relationship to the costs in Ireland. For every 100 paid in insurance by an Irish company, the British equivalent charge would be 34 and only 13 in Holland.”
ICOS also called on the Government to introduce fiscal policies to offset what it termed the exorbitant rise in the cost of insurance cover and also to investigate the insurance industry.
“Radical changes have to be introduced in order to control the insurance costs in the co-operative industries.
“Open competition has to be encouraged and the Competition Authority needs to investigate the insurance industry and why the increases are so substantial.”
Also, as part of the pre-budget submission, ICOS called upon the minister for finance to reduce employers PRSI to more sustainable levels.
It also urged him not to increase income tax or corporation tax bands as this has created a favourable environment for investment in general.
It further encouraged the Government to reduce VAT to more competitive rates that are more in line with those in the EU. Mr Boylan said the Department of Agriculture is seeking consolidation and rationalisation of the livestock markets.
To implement these objectives, the co-operative marts need fiscal incentives like exemptions from capital gains tax provided the proceeds are re-invested in the business of the co-ops.
ICOS also called on the Government to ensure that wage inflation is controlled and that appreciation is given to the present trading environment.
In relation to AI (artificial insemination), it requested exemption be granted from income and corporation tax on all aspects of the evaluation, identification and dissemination of superior genetic improvement in dairy and beef bovine in Ireland.
As regards wind energy, ICOS proposed a number of initiatives including the introduction of tax incentives and exemptions to encourage creation of wind farm co-op.
Farmers who rent their land for turbines should be exempted from tax on income earned and a nationwide educational and awareness campaign should be funded by the exchequer.
Mr Boylan said the affiliated members of ICOS generate a turnover of €11bn per year and it is imperative the Government provides a favourable fiscal environment will encourage growth and development of a world-class industry.
